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June 2024 Market Update from Canada Life Investment Management
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The global economy may be uncertain, but we’ve got you covered with a snapshot of trends in Canada and around the world.
Global equity markets moved higher over the month of June. Investors carried a relatively optimistic stance towards risk assets as some global central banks began lowering interest rates. Furthermore, the global economy remained relatively resilient, despite challenges. The Bank of Canada (“BoC”) and European Central Bank (“ECB”) lowered their policy interest rates by 25 basis points (“bps”) at their June meetings. Meanwhile, the U.S. Federal Reserve Board (“Fed”), Bank of England (“BoE”) and Bank of Japan held steady.
Despite coming down in most countries and regions, inflationary pressures persist, keeping financial conditions relatively tight. Global manufacturing activity remained weak in June, still struggling amid weak global demand. Conversely, services sector activity has picked up recently, reflecting a shift in spending patterns by global consumers.
In Canada, the S&P/TSX Composite Index declined in June, dragged down by the Communication Services sector. U.S. equities advanced over the month. Yields on 10-year bonds in Canada and the U.S. declined. Gold prices ended largely unchanged, while the price of oil advanced.